Knight Therapeutics Sees Revenue Growth Amid Strategic Moves

Knight Therapeutics ( (KHTRF) ) has released its Q1 earnings. Here is a breakdown of the information Knight Therapeutics presented to its investors.

Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring, in-licensing, and commercializing pharmaceutical products across Canada and Latin America. The company operates through its subsidiaries United Medical, Biotoscana Farma, and Laboratorio LKM.

In its first quarter of 2025, Knight Therapeutics reported revenues of $88.1 million, marking a 2% increase from the previous year. Despite the revenue growth, the company experienced a decline in gross margin to 40% from 48% due to hyperinflation accounting in Argentina. The quarter also saw a net income of $2.2 million, a significant improvement from a net loss of $4.5 million in the same period last year.

Key financial metrics highlighted in the report include adjusted revenues of $88 million, a 3% increase, and adjusted EBITDA of $12.1 million, an 11% decrease from the previous year. The company also announced a strategic acquisition of Paladin Pharma Inc., expected to close mid-2025, which will expand its business in Canada and provide a stable cash flow.

Looking forward, Knight Therapeutics remains optimistic about its growth prospects, reaffirming its financial guidance for 2025. The company anticipates generating between $390 million to $405 million in revenues, with adjusted EBITDA expected to be approximately 13% of revenues, contingent on the successful completion of the Paladin acquisition and other strategic initiatives.